What is an NFT?
An NFT is a non-fungible token which contains a unit of data stored on the blockchain, establishing proof of ownership. Let's break that down a little bit, fungible, if something is fungible, it means it can be exchanged. For example, a dollar is fungible because I can trade it for another dollar. An NFT is non-fungible, meaning it is unique and not easily replaceable. Consider a dollar bill that Banksy has graffitied on. NFTs can be bought and sold online, and although usually a piece of art, they come in different formats such as music, videos and audio. NFTs can even represent anything in the form of a digital asset, such as a house or a car. There are many marketplaces where you can buy NFTs, and they are available on multiple blockchains. But today, we are focusing on the most popular marketplace, OpenSea, and the most popular blockchain, Ethereum. Follow this guide to become an NFT owner!
1. Set up a Non-Custodial Wallet
What is a non-custodial wallet? Sometimes referred to as a hot wallet, you are going to need one of these to interact with the DeFi (decentralized finance) ecosystem. When you buy cryptocurrency on an exchange, e.g. Coinbase, you have what is known as a custodial wallet; Binance has custody of your assets and controls them. A non-custodial wallet is the opposite, you are the sole owner of your funds, but this also means the responsibility of security rests with you, so make sure to write down your seed phrase, keep it safe, and never share it with others! We are going to be using the most popular non-custodial wallet: Metamask. Metamask is popular because of how easy it is to use and it is linked to OpenSea (the NFT marketplace) so you can see your NFTs inside of your wallet! To set up a MetaMask wallet, download the browser extension for your computer, and follow the instructions!
2. Fund your Wallet
Now you need to add some funds to your wallet to purchase an NFT.
You can buy Ethereum (ETH) on Rio and send it directly to your metamask account. First, determine the value of the NFT, so that you know how much ETH to buy. Then, use this link to input the amount of ETH you want to buy. Remember to include a little bit extra to pay for gas fees! After this step, you can now connect your metamask wallet address. Finally, upload your ID and finalize your transaction. Once you get a confirmation, your tokens should reach your address within a couple of seconds or minutes (the time is dependent on what crypto you buy).
3. Visit OpenSea
Now you are ready to visit OpenSea. Search OpenSea in your browser and make sure you choose the correct website. There are, unfortunately, lots of scams online. Check you have the correct address.
Now it’s time to connect your wallet. Just follow the instructions on the screen and enter your password for MetaMask.
Now you are connected to OpenSea and can browse through all the NFT collections.
4. Choose your NFT
You have ETH in your wallet, you’re connected to OpenSea, and you’re ready to buy! Now comes the hard part of selecting the NFT you want to purchase.
There are thousands of NFT projects to choose from, and you can browse through them on OpenSea.
Are you looking for artwork from a specific artist? Maybe you have seen hype growing around a particular NFT collection and want to join the community.
Whatever you’re searching for, OpenSea is the best place to be! You can browse until you find something you like.
5. Become an NFT Owner
You have found the NFT you want to buy, and it is time to become an owner. Click on ‘Buy Now’, and OpenSea will direct you to a purchase screen. A transaction will appear in your MetaMask, and if you are happy with your purchase and the gas fees you can approve the transaction.
Congratulations, you now own an NFT!